Janet Was Unable to Obtain Auto Insurance in the Voluntary

question 40

Multiple Choice

Janet was unable to obtain auto insurance in the voluntary insurance market.She was contacted by the state insurance department and notified that XYZ Insurance would be her insurer.The mechanism used in Janet's state to provide auto insurance to high-risk drivers is a(n)

• A)automobile insurance plan.
• B)joint underwriting association.
• C)specialty automobile insurer.
• D)reinsurance facility.

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Definitions:

Gross Profit Percentage

A financial metric that represents the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.

Discounts

A deduction from the usual cost of something, often provided as a promotion or to certain groups like students or veterans.

Taxable

Pertaining to income or transactions that are subject to tax by the relevant tax authority.

Municipal Bonds

Municipal Bonds are debt securities issued by municipalities to finance public projects, often offering tax-exempt interest payments to the investors.